Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Schedule of Changes in Projected Benefit Obligations

The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2017 and 2016:



	Pension Benefits						Retiree Medical and Other Postretirement Benefits
	2017			2016			2017			2016
	(In millions)
Benefit obligation at beginning of period	$	17,238		$	16,395		$	991		$	1,131
Service cost	2			2			4			3
Interest cost	721			749			39			47
Actuarial (gain) loss ^{(1) (2)}	1,016			729			49			(105		)
Plan amendments	—			—			—			7
Settlements	(4		)	(2		)	—			—
Benefit payments	(726		)	(635		)	(80		)	(92		)
Other	28			—			8			—
Benefit obligation at end of period	$	18,275		$	17,238		$	1,011		$	991



Fair value of plan assets at beginning of period	$	10,017		$	9,707		$	266		$	253
Actual return on plan assets	1,797			915			37			22
Employer contributions ⁽³⁾	286			32			72			83
Settlements	(4		)	(2		)	—			—
Benefit payments	(726		)	(635		)	(80		)	(92		)
Other	25			—			—			—
Fair value of plan assets at end of period	$	11,395		$	10,017		$	295		$	266
Funded status at end of period	$	(6,880	)	$	(7,221	)	$	(716	)	$	(725	)


⁽¹⁾	The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to our mortality assumptions.


⁽²⁾	The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to our mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes.


⁽³⁾	During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution.

Schedule of Changes in Fair Value of Plan Assets



Fair value of plan assets at beginning of period	$	10,017		$	9,707		$	266		$	253
Actual return on plan assets	1,797			915			37			22
Employer contributions ⁽³⁾	286			32			72			83
Settlements	(4		)	(2		)	—			—
Benefit payments	(726		)	(635		)	(80		)	(92		)
Other	25			—			—			—
Fair value of plan assets at end of period	$	11,395		$	10,017		$	295		$	266
Funded status at end of period	$	(6,880	)	$	(7,221	)	$	(716	)	$	(725	)


⁽¹⁾	The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to our mortality assumptions.


⁽²⁾	The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to our mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes.


⁽³⁾	During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution.

Schedule of Amounts Recognized in Consolidated Balance Sheets

Balance Sheet Position



	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2017		2016		2017		2016
	(In millions)
As of December 31,
Current liability	$	10	$	7	$	89	$	97
Noncurrent liability	6,870		7,214		627		628
Total liabilities	$	6,880	$	7,221	$	716	$	725

Schedule of Amounts Recognized in Other Comprehensive Income



Net actuarial loss (gain)	$	5,351	$	5,484	$	(388	)	$	(430	)
Prior service cost (benefit)	160		188		(600		)	(837		)
Total accumulated other comprehensive loss (income), pre-tax	$	5,511	$	5,672	$	(988	)	$	(1,267	)

Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets

Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets



	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2017		2016		2017		2016
	(In millions)
Projected benefit obligation	$	18,245	$	17,209	$	—	$	—
Accumulated benefit obligation (ABO)	18,235		17,197		—		—
Accumulated postretirement benefit obligation	—		—		1,011		990
Fair value of plan assets	11,364		9,986		295		266
ABO less fair value of plan assets	6,871		7,211		—		—

Components of Net Periodic Benefit Cost (Income)

Net Periodic Benefit Cost (Income)



	Pension Benefits									Retiree Medical and Other Postretirement Benefits
	2017			2016			2015			2017			2016			2015
	(In millions)
Defined benefit plans:
Service cost	$	2		$	2		$	2		$	4		$	3		$	3
Interest cost	721			749			737			39			47			50
Expected return on assets	(790		)	(750		)	(851		)	(21		)	(20		)	(19		)
Settlements	1			—			1			—			—			—
Amortization of:
Prior service cost (benefit)	28			28			28			(237		)	(240		)	(243		)
Unrecognized net loss (gain)	144			126			112			(23		)	(17		)	(9		)
Net periodic benefit cost (income)	106			155			29			(238		)	(227		)	(218		)
Defined contribution plan cost	851			766			662			N/A			N/A			N/A
Total cost (income)	$	957		$	921		$	691		$	(238	)	$	(227	)	$	(218	)

Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost

The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost for the periods presented:



	Pension Benefits		Retiree Medical and Other Postretirement Benefits
	2017	2016	2017	2016
Benefit obligations:
Weighted average discount rate	3.80%	4.30%	3.60%	4.10%



	Pension Benefits			Retiree Medical and Other Postretirement Benefits
	2017	2016	2015	2017	2016	2015
Net periodic benefit cost:
Weighted average discount rate	4.30%	4.70%	4.30%	4.10%	4.42%	4.00%
Weighted average expected rate of return on plan assets	8.00%	8.00%	8.00%	8.00%	8.00%	8.00%
Weighted average health care cost trend rate assumed for next year ⁽¹⁾	N/A	N/A	N/A	4.19%	4.25%	5.21%


⁽¹⁾	The weighted average health care cost trend rate at December 31, 2017 is assumed to decline gradually to 3.76% by 2025 and remain level thereafter.

Schedule of One Percentage Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the assumed health care cost trend rates would have the following effects on our retiree medical and other postretirement benefits plans (in millions):



	1% Increase		1% Decrease
Increase (decrease) on 2017 service and interest cost	$	2	$	(2	)
Increase (decrease) on benefit obligation as of December 31, 2017	54		(51		)

Schedule of Expected Future Service Benefit Payments

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):



	2018		2019		2020		2021		2022		2023-2027
Pension benefits	$	715	$	754	$	799	$	843	$	884	$	4,976
Retiree medical and other postretirement benefits	96		92		80		75		70		315

Schedule of Allocation of Plan Assets

The current strategic target asset allocation is as follows:



Asset Class/Sub-Class	Allowed Range
Equity	65% - 90%
Public:
U.S. Large	20% - 50%
U.S. Small/Mid	0% - 10%
International	17% - 27%
Emerging Markets	5% - 11%
Alternative Investments	5% - 20%
Fixed Income	15% - 40%
Public:
U.S. Long Duration	15% - 30%
High Yield and Emerging Markets	0% - 10%
Private Income	0% - 10%
Other	0% - 5%
Cash Equivalents	0% - 5%

Changes in Fair Value Measurements of Level 3 Investments

Changes in fair value measurements of Level 3 investments during the year ended December 31, 2017, were as follows (in millions):



	Private Equity Partnerships			Insurance Group Annuity Contracts
Beginning balance at December 31, 2016	$	21		$	2
Actual loss on plan assets:
Relating to assets still held at the reporting date	(4		)	—
Purchases	1			—
Sales	(1		)	—
Transfers out	(3		)	—
Ending balance at December 31, 2017	$	14		$	2

Changes in fair value measurements of Level 3 investments during the year ended December 31, 2016, were as follows (in millions):



	Private Equity Partnerships			Insurance Group Annuity Contracts
Beginning balance at December 31, 2015	$	16		$	2
Actual return on plan assets:
Relating to assets sold during the period	7			—
Purchases	7			—
Sales	(9		)	—
Ending balance at December 31, 2016	$	21		$	2

Pension Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Allocation of Plan Assets

The fair value of our pension plan assets at December 31, 2017 and 2016, by asset category, are as follows (in millions):



	Fair Value Measurements as of December 31, 2017
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	28		$	—	$	—	$	28
Equity securities:
International markets ^(a) ^(b)	3,837			—		—		3,837
Large-cap companies ^(b)	2,451			—		—		2,451
Mid-cap companies ^(b)	744			—		—		744
Small-cap companies ^(b)	125			—		—		125
Mutual funds ^(c)	55			—		—		55
Fixed income:
Corporate bonds ^(d)	—			2,344		—		2,344
Government securities ^(e)	—			238		—		238
U.S. municipal securities	—			39		—		39
Alternative instruments:
Private equity partnerships ^(f)	—			—		14		14
Private equity partnerships measured at net asset value ^{(f) (h)}	—			—		—		879
Common/collective trusts ^(g)	—			315		—		315
Common/collective trusts and 103-12 Investment Trust measured at net asset value ^{(g) (h)}	—			—		—		283
Insurance group annuity contracts	—			—		2		2
Dividend and interest receivable	44			—		—		44
Due to/from brokers for sale of securities – net	3			—		—		3
Other liabilities – net	(6		)	—		—		(6		)
Total	$	7,281		$	2,936	$	16	$	11,395


^a)	Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% with no concentration greater than 5% in any one country.


^b)	There are no significant concentrations of holdings by company or industry.


^c)	Investment includes mutual funds invested 39% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 34% in U.S. treasuries and corporate bonds and 27% in equity securities of international companies.


^d)	Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies.


^e)	Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification.

^f)

Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $903 million over the next ten years.

^g)

Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.


^h)	Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.



	Fair Value Measurements as of December 31, 2016
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	573		$	—	$	—	$	573
Equity securities:
International markets ^{(a) (b)}	3,232			—		—		3,232
Large-cap companies ^(b)	2,253			—		—		2,253
Mid-cap companies ^(b)	371			—		—		371
Small-cap companies ^(b)	6			—		—		6
Mutual funds ^(c)	49			—		—		49
Fixed income:
Corporate bonds ^(d)	—			2,337		—		2,337
Government securities ^(e)	—			150		—		150
U.S. municipal securities	—			37		—		37
Alternative instruments:
Private equity partnerships ^(f)	—			—		21		21
Private equity partnerships measured at net asset value ^{(f) (h)}	—			—		—		703
Common/collective trusts ^(g)	—			32		—		32
Common/collective trusts and 103-12 Investment Trust measured at net asset value ^{(g) (h)}	—			—		—		227
Insurance group annuity contracts	—			—		2		2
Dividend and interest receivable	40			—		—		40
Due to/from brokers for sale of securities – net	(9		)	—		—		(9		)
Other liabilities – net	(7		)	—		—		(7		)
Total	$	6,508		$	2,556	$	23	$	10,017


^a)	Holdings are diversified as follows: 15% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 6% Netherlands, 17% other emerging markets and the remaining 33% with no concentration greater than 5% in any one country.


^b)	There are no significant concentrations of holdings by company or industry.


^c)	Investment includes mutual funds invested 42% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 33% in U.S. treasuries and corporate bonds and 25% in equity securities of international companies.


^d)	Includes approximately 74% investments in corporate debt with a S&P rating lower than A and 26% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies.


^e)	Includes approximately 61% investments in U.S. domestic government securities and 39% in emerging market government securities. There are no significant foreign currency risks within this classification.

^f)

Includes limited partnerships that invest primarily in U.S. (95%) and European (5%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $456 million over the next ten years.

^g)

Investment includes 73% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 15% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. Requests for withdrawals must meet specific requirements with advance notice of redemption preferred.


^h)	Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.

Retiree Medical And Other Postretirement Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Allocation of Plan Assets

The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions):



	Fair Value Measurements as of December 31, 2017
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Money market fund	$	5	$	—	$	—	$	5
Mutual funds – AAL Class	—		290		—		290
Total	$	5	$	290	$	—	$	295

The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2016 by asset category, were as follows (in millions):



	Fair Value Measurements as of December 31, 2016
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Money market fund	$	5	$	—	$	—	$	5
Mutual funds – Institutional Class	261		—		—		261
Total	$	266	$	—	$	—	$	266

American Airlines, Inc. [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Changes in Projected Benefit Obligations



	Pension Benefits						Retiree Medical and Other Postretirement Benefits
	2017			2016			2017			2016
	(In millions)
Benefit obligation at beginning of period	$	17,148		$	16,310		$	990		$	1,129
Service cost	2			2			4			3
Interest cost	717			746			39			47
Actuarial (gain) loss ^{(1) (2)}	1,007			725			49			(104		)
Plan amendments	—			—			—			7
Settlements	(4		)	(2		)	—			—
Benefit payments	(723		)	(633		)	(80		)	(92		)
Other	28			—			8			—
Benefit obligation at end of period	$	18,175		$	17,148		$	1,010		$	990



	Pension Benefits						Retiree Medical and Other Postretirement Benefits
	2017			2016			2017			2016
	(In millions)
Fair value of plan assets at beginning of period	$	9,968		$	9,660		$	266		$	253
Actual return on plan assets	1,788			911			37			22
Employer contributions ⁽³⁾	286			32			72			83
Settlements	(4		)	(2		)	—			—
Benefit payments	(723		)	(633		)	(80		)	(92		)
Other	25			—			—			—
Fair value of plan assets at end of period	$	11,340		$	9,968		$	295		$	266
Funded status at end of period	$	(6,835	)	$	(7,180	)	$	(715	)	$	(724	)


⁽¹⁾	The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to American’s mortality assumptions.


⁽²⁾	The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to American’s mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes.


⁽³⁾	During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution.

Schedule of Changes in Fair Value of Plan Assets



	Pension Benefits						Retiree Medical and Other Postretirement Benefits
	2017			2016			2017			2016
	(In millions)
Fair value of plan assets at beginning of period	$	9,968		$	9,660		$	266		$	253
Actual return on plan assets	1,788			911			37			22
Employer contributions ⁽³⁾	286			32			72			83
Settlements	(4		)	(2		)	—			—
Benefit payments	(723		)	(633		)	(80		)	(92		)
Other	25			—			—			—
Fair value of plan assets at end of period	$	11,340		$	9,968		$	295		$	266
Funded status at end of period	$	(6,835	)	$	(7,180	)	$	(715	)	$	(724	)


⁽¹⁾	The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to American’s mortality assumptions.


⁽²⁾	The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to American’s mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes.


⁽³⁾	During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution.

Schedule of Amounts Recognized in Consolidated Balance Sheets



	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2017		2016		2017		2016
	(In millions)
As of December 31,
Current liability	$	10	$	7	$	88	$	97
Noncurrent liability	6,825		7,173		627		627
Total liabilities	$	6,835	$	7,180	$	715	$	724

Schedule of Amounts Recognized in Other Comprehensive Income



Net actuarial loss (gain)	$	5,337	$	5,472	$	(388	)	$	(429	)
Prior service cost (benefit)	159		188		(600		)	(837		)
Total accumulated other comprehensive loss (income), pre-tax	$	5,496	$	5,660	$	(988	)	$	(1,266	)

Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets

Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets



	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2017		2016		2017		2016
	(In millions)
Projected benefit obligation	$	18,144	$	17,119	$	—	$	—
Accumulated benefit obligation (ABO)	18,135		17,108		—		—
Accumulated postretirement benefit obligation	—		—		1,010		990
Fair value of plan assets	11,307		9,936		295		266
ABO less fair value of plan assets	6,828		7,172		—		—

Components of Net Periodic Benefit Cost (Income)



	Pension Benefits									Retiree Medical and Other Postretirement Benefits
	2017			2016			2015			2017			2016			2015
	(In millions)
Defined benefit plans:
Service cost	$	2		$	2		$	1		$	4		$	3		$	3
Interest cost	717			746			733			39			47			50
Expected return on assets	(786		)	(747		)	(848		)	(21		)	(20		)	(19		)
Settlements	1			—			1			—			—			—
Amortization of:
Prior service cost (benefit)	28			28			28			(237		)	(240		)	(243		)
Unrecognized net loss (gain)	144			125			111			(23		)	(16		)	(9		)
Net periodic benefit cost (income)	106			154			26			(238		)	(226		)	(218		)
Defined contribution plan cost	844			761			657			N/A			N/A			N/A
Total cost (income)	$	950		$	915		$	683		$	(238	)	$	(226	)	$	(218	)

Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost

The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost for the periods presented:



	Pension Benefits		Retiree Medical and Other Postretirement Benefits
	2017	2016	2017	2016
Benefit obligations:
Weighted average discount rate	3.80%	4.30%	3.60%	4.10%



	Pension Benefits			Retiree Medical and Other Postretirement Benefits
	2017	2016	2015	2017	2016	2015
Net periodic benefit cost:
Weighted average discount rate	4.30%	4.70%	4.30%	4.10%	4.42%	4.00%
Weighted average expected rate of return on plan assets	8.00%	8.00%	8.00%	8.00%	8.00%	8.00%
Weighted average health care cost trend rate assumed for next year ⁽¹⁾	N/A	N/A	N/A	4.19%	4.25%	5.21%


⁽¹⁾	The weighted average health care cost trend rate at December 31, 2017 is assumed to decline gradually to 3.76% by 2025 and remain level thereafter.

Schedule of One Percentage Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the assumed health care cost trend rates would have the following effects on American’s retiree medical and other postretirement benefits plans (in millions):



	1% Increase		1% Decrease
Increase (decrease) on 2017 service and interest cost	$	2	$	(2	)
Increase (decrease) on benefit obligation as of December 31, 2017	54		(51		)

Schedule of Expected Future Service Benefit Payments

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):



	2018		2019		2020		2021		2022		2023-2027
Pension benefits	$	712	$	750	$	795	$	839	$	879	$	4,951
Retiree medical and other postretirement benefits	96		92		80		75		70		314

Schedule of Allocation of Plan Assets

The current strategic target asset allocation is as follows:



Asset Class/Sub-Class	Allowed Range
Equity	65% - 90%
Public:
U.S. Large	20% - 50%
U.S. Small/Mid	0% - 10%
International	17% - 27%
Emerging Markets	5% - 11%
Alternative Investments	5% - 20%
Fixed Income	15% - 40%
Public:
U.S. Long Duration	15% - 30%
High Yield and Emerging Markets	0% - 10%
Private Income	0% - 10%
Other	0% - 5%
Cash Equivalents	0% - 5%

Changes in Fair Value Measurements of Level 3 Investments

Changes in fair value measurements of Level 3 investments during the year ended December 31, 2017, were as follows (in millions):



	Private Equity Partnerships			Insurance Group Annuity Contracts
Beginning balance at December 31, 2016	$	21		$	2
Actual loss on plan assets:
Relating to assets still held at the reporting date	(4		)	—
Purchases	1			—
Sales	(1		)	—
Transfers out	(3		)	—
Ending balance at December 31, 2017	$	14		$	2

Changes in fair value measurements of Level 3 investments during the year ended December 31, 2016, were as follows (in millions):



	Private Equity Partnerships			Insurance Group Annuity Contracts
Beginning balance at December 31, 2015	$	16		$	2
Actual return on plan assets:
Relating to assets sold during the period	7			—
Purchases	7			—
Sales	(9		)	—
Ending balance at December 31, 2016	$	21		$	2

American Airlines, Inc. [Member] | Pension Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Allocation of Plan Assets

The fair value of American’s pension plan assets at December 31, 2017 and 2016, by asset category, are as follows (in millions):



	Fair Value Measurements as of December 31, 2017
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	28		$	—	$	—	$	28
Equity securities:
International markets ^{(a) (b)}	3,837			—		—		3,837
Large-cap companies ^(b)	2,451			—		—		2,451
Mid-cap companies ^(b)	744			—		—		744
Small-cap companies ^(b)	125			—		—		125
Fixed income:
Corporate bonds ^(c)	—			2,344		—		2,344
Government securities ^(d)	—			238		—		238
U.S. municipal securities	—			39		—		39
Alternative instruments:
Private equity partnerships ^(e)	—			—		14		14
Private equity partnerships measured at net asset value ^{(e) (g)}	—			—		—		879
Common/collective trusts ^(f)	—			315		—		315
Common/collective trusts and 103-12 Investment Trust measured at net asset value ^{(f) (g)}	—			—		—		283
Insurance group annuity contracts	—			—		2		2
Dividend and interest receivable	44			—		—		44
Due to/from brokers for sale of securities – net	3			—		—		3
Other liabilities – net	(6		)	—		—		(6		)
Total	$	7,226		$	2,936	$	16	$	11,340


^a)	Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% with no concentration greater than 5% in any one country.


^b)	There are no significant concentrations of holdings by company or industry.


^c)	Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies.


^d)	Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification.

^e)

^f)


^g)	Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.



	Fair Value Measurements as of December 31, 2016
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	573		$	—	$	—	$	573
Equity securities:
International markets ^{(a) (b)}	3,232			—		—		3,232
Large-cap companies ^(b)	2,253			—		—		2,253
Mid-cap companies ^(b)	371			—		—		371
Small-cap companies ^(b)	6			—		—		6
Fixed income:
Corporate bonds ^(c)	—			2,337		—		2,337
Government securities ^(d)	—			150		—		150
U.S. municipal securities	—			37		—		37
Alternative instruments:
Private equity partnerships ^(e)	—			—		21		21
Private equity partnerships measured at net asset value ^{(e) (g)}	—			—		—		703
Common/collective trusts ^(f)	—			32		—		32
Common/collective trusts and 103-12 Investment Trust measured at net asset value ^{(f) (g)}	—			—		—		227
Insurance group annuity contracts	—			—		2		2
Dividend and interest receivable	40			—		—		40
Due to/from brokers for sale of securities – net	(9		)	—		—		(9		)
Other liabilities – net	(7		)	—		—		(7		)
Total	$	6,459		$	2,556	$	23	$	9,968


^a)	Holdings are diversified as follows: 15% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 6% Netherlands, 17% other emerging markets and the remaining 33% with no concentration greater than 5% in any one country.


^b)	There are no significant concentrations of holdings by company or industry.


^c)	Includes approximately 74% investments in corporate debt with a S&P rating lower than A and 26% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies.


^d)	Includes approximately 61% investments in U.S. domestic government securities and 39% in emerging market government securities. There are no significant foreign currency risks within this classification.

^e)

^f)


^g)	Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.

American Airlines, Inc. [Member] | Retiree Medical And Other Postretirement Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Allocation of Plan Assets

The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions):



	Fair Value Measurements as of December 31, 2017
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Money market fund	$	5	$	—	$	—	$	5
Mutual funds – AAL Class	—		290		—		290
Total	$	5	$	290	$	—	$	295

The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2016 by asset category, were as follows (in millions):



	Fair Value Measurements as of December 31, 2016
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Money market fund	$	5	$	—	$	—	$	5
Mutual funds – Institutional Class	261		—		—		261
Total	$	266	$	—	$	—	$	266